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of <h1>Tribunal overturns eligibility rejection, citing natural justice denial. Bank transactions crucial.</h1> The Tribunal set aside the rejection of the eligibility certificate under the West Bengal Sales Tax Act, 1954, due to doubts regarding the genuineness of ... - Issues:- Rejection of eligibility certificate under West Bengal Sales Tax Act, 1954.- Genuineness of purchase of plant and machinery.- Denial of natural justice in the enquiry process.- Verification of payment by the bank.Analysis:The judgment involves an application under the West Bengal Taxation Tribunal Act, 1987, challenging the rejection of eligibility certificate (E.C.) under the West Bengal Sales Tax Act, 1954. The applicants, a registered dealer, sought the E.C. for setting up a factory for manufacturing ice blocks. The dispute centered around the genuineness of the purchase of plant and machinery from a corporation, Cold Air Corporation. The Assistant Commissioner and Additional Commissioner rejected the E.C. application due to doubts regarding the existence of the corporation and lack of verifiable vouchers for the purchases.The applicants argued that the rejection was unfair as the corporation did exist at the address where the installation works were carried out. They contended that direct payments by the bank to the corporation, based on certified bills submitted by the applicants, should serve as conclusive proof of the purchases. They also highlighted the delay in the local enquiry and lack of opportunity to rebut the enquiry report, alleging a denial of natural justice.The State Representative argued that the non-existence of the corporation was established through the local enquiry, casting doubt on the genuineness of the purchases. He emphasized that direct payments by the bank do not automatically validate the transactions, citing a Tribunal judgment. The authorities' rejection was based on the inability to verify the genuineness of the purchases, as required by rule 3(66a) of the 1941 Rules.The Tribunal noted the factual dispute regarding the existence of the corporation and the genuineness of the purchases. While direct bank payments were a relevant factor, they were not conclusive proof. The Tribunal found a denial of natural justice due to insufficient opportunity to challenge the enquiry report. It directed the Assistant Commissioner to re-examine the case, considering all evidence, including bank transactions, and ensuring a fair hearing for the applicants.In conclusion, the Tribunal set aside the previous orders, remanding the matter for fresh disposal by the Assistant Commissioner. The respondents were restrained from demanding sales tax until the fresh decision. The judgment emphasized the importance of verifying bank transactions and upholding principles of natural justice in tax matters.
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